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MWG [Upgrade BUY +39%] – Stock looks attractive again; 1Q earnings on track

Upgrade to BUY, reiterate target price of VND98,000 (adjusted for recent 4:1 bonus share issuance). Valuation looks attractive again following 19% slide in stock’s price since the end of April 2015. 1Q15 net sales were up 57% and PAT rose 39% vs. 1Q14 on the back of aggressive store opening and is on track to reach our FY15 target. At VND70,500, MWG is trading at FY15 PER of 11x VCSC’s diluted EPS of VND6,110 (+28% vs. FY14), a 33% discount to regional peers average of 16.4x.